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We Ran A Stock Scan For Earnings Growth And Grupo Aeroportuario del Sureste S. A. B. de C. V (BMV:ASURB) Passed With Ease
The excitement of investing in a company that can reverse its fortunes is a big draw for some speculators, so even companies that have no revenue, no profit, and a record of falling short, can manage to find investors. But the reality is that when a company loses money each year, for long enough, its investors will usually take their share of those losses. Loss making companies can act like a sponge for capital - so investors should be cautious that they're not throwing good money after bad.
If this kind of company isn't your style, you like companies that generate revenue, and even earn profits, then you may well be interested in Grupo Aeroportuario del Sureste S. A. B. de C. V (BMV:ASURB). Now this is not to say that the company presents the best investment opportunity around, but profitability is a key component to success in business.
See our latest analysis for Grupo Aeroportuario del Sureste S. A. B. de C. V
Grupo Aeroportuario del Sureste S. A. B. de C. V's Earnings Per Share Are Growing
Generally, companies experiencing growth in earnings per share (EPS) should see similar trends in share price. So it makes sense that experienced investors pay close attention to company EPS when undertaking investment research. It certainly is nice to see that Grupo Aeroportuario del Sureste S. A. B. de C. V has managed to grow EPS by 17% per year over three years. As a general rule, we'd say that if a company can keep up that sort of growth, shareholders will be beaming.
It's often helpful to take a look at earnings before interest and tax (EBIT) margins, as well as revenue growth, to get another take on the quality of the company's growth. Grupo Aeroportuario del Sureste S. A. B. de C. V shareholders can take confidence from the fact that EBIT margins are up from 33% to 53%, and revenue is growing. Both of which are great metrics to check off for potential growth.
The chart below shows how the company's bottom and top lines have progressed over time. For finer detail, click on the image.
Fortunately, we've got access to analyst forecasts of Grupo Aeroportuario del Sureste S. A. B. de C. V's future profits. You can do your own forecasts without looking, or you can take a peek at what the professionals are predicting.
Are Grupo Aeroportuario del Sureste S. A. B. de C. V Insiders Aligned With All Shareholders?
Insider interest in a company always sparks a bit of intrigue and many investors are on the lookout for companies where insiders are putting their money where their mouth is. This view is based on the possibility that stock purchases signal bullishness on behalf of the buyer. Of course, we can never be sure what insiders are thinking, we can only judge their actions.
One gleaming positive for Grupo Aeroportuario del Sureste S. A. B. de C. V, in the last year, is that a certain insider has buying shares with ample enthusiasm. In other words, the President & Chairman, Fernando Gerardo Chico Pardo, acquired Mex$1.2b worth of shares over the previous 12 months at an average price of around Mex$411. Seeing such high conviction in the company is a huge positive for shareholders and should instil confidence in their mission.
The good news, alongside the insider buying, for Grupo Aeroportuario del Sureste S. A. B. de C. V bulls is that insiders (collectively) have a meaningful investment in the stock. Notably, they have an enviable stake in the company, worth Mex$31b. Coming in at 27% of the business, that holding gives insiders a lot of influence, and plenty of reason to generate value for shareholders. Looking very optimistic for investors.
Is Grupo Aeroportuario del Sureste S. A. B. de C. V Worth Keeping An Eye On?
For growth investors, Grupo Aeroportuario del Sureste S. A. B. de C. V's raw rate of earnings growth is a beacon in the night. Better still, insiders own a large chunk of the company and one has even been buying more shares. So it's fair to say that this stock may well deserve a spot on your watchlist. We should say that we've discovered 1 warning sign for Grupo Aeroportuario del Sureste S. A. B. de C. V that you should be aware of before investing here.
Keen growth investors love to see insider buying. Thankfully, Grupo Aeroportuario del Sureste S. A. B. de C. V isn't the only one. You can see a a free list of them here.
Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
About BMV:ASUR B
Grupo Aeroportuario del Sureste S. A. B. de C. V
Grupo Aeroportuario del Sureste, S. A. B.
Flawless balance sheet, undervalued and pays a dividend.